A Recent Survey of Fraud by International Accounting Firm KPMG

question 8

Multiple Choice

A recent survey of fraud by international accounting firm KPMG reported

• A)reported a 13% decrease in instances of corporate fraud compared with five years earlier.
• B)that employee fraud (such things as expense account abuse, payroll fraud, and theft of assets)represents 60% of all instances of fraud.
• C)financial reporting fraud (the intentional misstatement of financial reports)was the least costly to companies.
• D)business scandals with large investment losses and few employee layoffs.

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Definitions:

Best Efforts

A contractual obligation that requires one party to exert all possible efforts to fulfill the terms of the contract without guaranteeing a specific outcome.

UCC

The Uniform Commercial Code is an extensive collection of regulations that oversee commercial dealings within the United States.

Risk of Loss

The potential for an asset to decrease in value or for a financial loss to occur in a transaction.

Reimbursed

Repaid or compensated for expenses or losses incurred.